An independent board of directors at Intelsat Jackson Holdings SA is working with Quinn Emanuel as legal advisor and AlixPartners as financial advisor in preparation for a complex in-court restructuring that may involve
avoidance actions related to intercompany transactions, according to sources.
Intelsat Jackson, the issuer of $11.76 billion, or 70% of prepetition debt, receives distributions from Intelsat Alliance, where it holds a 92.5% ownership and limited partnership, according to the debtors’
cash management motion and
first day declaration. Intelsat Alliance receives loan repayments from Intelsat Ventures and dividends from Ventures and Intelsat US Finance, which are operating entities that receive payments from customers.
The Luxembourg-based satellite operator
filed for a free-fall chapter 11 earlier this month with a proposed DIP facility totaling $1 billion committed by a group of holders of Jackson secured and unsecured debt that
organized with Akin Gump as legal advisor and Centerview as financial advisor. At least two groups of Intelsat bondholders
submitted restructuring proposals to the company prior to its bankruptcy filing that outlined varying treatment for its unsecured debt classes with respect to equitization, Reorg reported.
A group of Jackson unsecured noteholders
organized with law firm Orrick, and a group of holders of Jackson unsecured, Luxembourg and Connect Finance notes is
working with Jones Day as legal advisor and Houlihan Lokey as financial advisor. A group of ICF, Envision and Luxembourg noteholders organized with law firm Paul Weiss and Ducera Partners. The seven-member official committee of unsecured creditors
selected Milbank as legal advisor.
Intelsat is
advised by law firm Kirkland & Ellis, PJT Partners as investment banker and Alvarez & Marsal as financial advisor.
Intelsat, Quinn Emanuel and AlixPartners did not immediately respond to requests for comment.
--Harvard Zhang